FE CONSORT INTL(HK:00035)2025-11-27 15:05Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, despite a net loss attributable to shareholders of HKD 988 million due to impairment losses [4][6][12] - The adjusted gross profit margin increased by 3.6 percentage points to 34.8%, driven mainly by property sales [12][13] - The net gearing ratio improved to 64.9%, down 2.7 percentage points compared to the end of March [7][14] Business Line Data and Key Metrics Changes - Property development revenue was HKD 3.2 billion, with a profit margin increase from 31.3% to 36.8% [25][26] - Hotel revenue increased by 9.5% to nearly HKD 1 billion, with occupancy rates improving significantly [36] - Car park revenue decreased by 10% to HKD 343 million, attributed to holding costs [45] - Gaming revenue increased by 11% to HKD 2,018 million, with an adjusted gross profit margin of 42% [46] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing over 50% in recent years [27] - In London, the Aspen at Consort Place project is expected to benefit from a housing supply shortage [29] - The Melbourne market showed strong performance with Westside Place selling out 1,400 units [31] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - There is a focus on divesting non-core assets and transitioning towards an asset-light business model [52] - The company plans to unlock hotel revaluation surplus and continue to enhance its hotel portfolio [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the Hong Kong property market and the potential for no further material impairments [55][56] - The company is focused on reducing bank loans and maintaining a healthy financial position, with plans to complete ongoing projects [62][63] - Future cash flow visibility is strong, with HKD 9.3 billion in pre-sales and contracted sales expected to contribute to revenue [51] Other Important Information - The company has entered into agreements to dispose of certain non-core assets, including a car park in Sydney for AUD 3.7 million [9][45] - The company is actively involved in community support following a recent tragedy, demonstrating its commitment to social responsibility [2][24] Q&A Session Summary Question: Is there a risk of further impairment for the Sai Ying Pun project? - Management does not foresee further impairment, citing recent market stabilization and strong sales performance in the Pavilion Forest project [55][56] Question: What is the company's strategy regarding sustainability? - The company is converting loans to sustainability-focused financing and emphasizes its commitment to social impact through various initiatives [57][58] Question: What are the plans for the perpetual bonds? - The priority is on reducing bank loans, with no immediate rush to address the high coupon rates of perpetual bonds [62][63]